Scottish and Irish clubs have vowed to go it alone after the defection of their Welsh cousins to the revamped English Powergen Cup.
And Hugh is adamant the absence of Welsh sides will not dilute next season's competition or cause severe cash problems for his club, Edinburgh and Borders. Scotland and Ireland bosses are hoping Wales will return to the fold for the 2006-7 season, along with Italy.
Hugh told the Daily Record: "I'm not gloomy in the slightest about what is happening. A less frantic season will help our professional players prepare more thoroughly for the Heineken Cup and European Challenge Cup.
"A 12-match league between the Scottish and Irish sides coupled with a probable cup competition will still provide an attractive schedule to all involved.
"And with the European games, there'll be plenty of top-class rugby for the fans. I'll be looking on next season as a stepping stone to bigger and better things.
'The prospect of an expanded Celtic League to include the Italians along with the Rainbow Cup is terrifically exciting. In the short term, we're likely to be going through a transition period.
"However, I'm extremely upbeat and excited about what's on the menu longer term."
You can read the Daily Record article here